So they have reduced the forecast first 5 years "AISC earnings" margin by about 7.6%, based on USD2300 gold. The new gear should be a capital cost, and not part of AISC. So AIC is probably also up by a bit as well.
If this is due to the impact of moving to in house, the move does not make immediate financial sense. However there are swings and roundabouts to every decision. It may be they suffered bill shock from the contractor quotes. So they are taking a risk to save money, and by the looks, paying more anyway.
I'm not sure they have experience running their own mines. They might be planning to move in house at Sanbrado as well. PRN shareholders will not be pleased if that happens - I think their (AMS) contract is up within the next 12 months.
Let me know if I am definitely wrong about anything - always keen to be corrected.
Edit - I see the comments on political risk in BF.
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